Pretium Resources - PVG.TO

There is a lot of buzz regarding this stock and I for one believe that if you own a 6-12 stocks this should be one of them but people should know what they are getting into.

Pretium Resources is a Exploration company located in BC Canada in an area that is known as the "Golden Triangle" which is currently identified as one of the biggest gold deposits in North America.

The Management, the President and CEO is Robert Quatermain, the former head of Silver Standard Resources, considered by many to be one of the best run Silver Miners out there. Robert came out of retirement to head this company because of the world class/bonanza resources and potential the property had. The resources are estimated to be anywhere from 26-60 million oz of gold. In combination with Seabridge, next door, the two combined are said to have about 100 million oz of au in resouces. When the number of deposits found that is over 5 million oz (the size needed for most senior producers to consider an acquisition) in the low single digits in a year, it makes for an interesting story. The size of the deposit also actually also limits the number of seniors that can afford to buy them so if acquisition was their plan, there will probably be a long song and dance before a courtship even begins. Also, the 26-60 mil of gold are resources NOT reserves yet and the economics that they company published on their website shows that it would cost 3-4 billion dollars to build in the infrastructure. The market cap is at 700 million, so where is this money coming from? Needless to say the project is years, thats right, years away from producing a single ounce of gold and a lot things still have to go right.

Bob Chapman, (love him/hate him) sent me an email about them and he believes that this stock will be worth $30 by the end of the year and other Gold Mining experts like Jay Taylor really like them so I guess betting them is like drafting a major leaguer's son for your baseball team. A friend of mine (a guy who is a former investment banker from TD and converted Gold/Mining nut by me) looked into their financials and believes that a lot of the potential has been priced in so he thinks it is undervalued but he sees it potentially being a double in the short term. He's hot on other stocks that are actually producing and have as much short term potential (I can't really argue with him there). That said, if the gold price goes to 1800-2000 in the next 6 months and the world finally wakes up to the smell of money in the gold mines, I think it should be more than a double and if you're able to hold long enough, I think it has a great chance of being a 10-100 bagger, if you are willing to wait another 4-8 years. Some simple math tells me that that if the resources end up being say, 15 million oz in reserves, and the market values the gold in the ground at $300/oz then we are talking about a value of $4.5 billion, still not shabby (please slap me upside the head if these numbers are off).

Pretium recently announced that they are going to share resources and work together with Seabridge. Makes sense in that it is essentially one large deposit and if one is going to get bought, the other will probably get bought with it.

Love to know your guys thoughts on this stock. I haven't bought yet but is on my very short wishlist for the summer bargain hunting season that's to come. The stock recently broke out of a bull flag pattern after a sharp increase in value and is currently going sideways so it is definitely consolidating and technically speaking, I could be wrong, but I don't expect it to move up or down significantly for a few more weeks. Stock hasn't really been listed long to do crazy technicals on it anyways.

KiniK, yeah it is on my "to buy" list someday too. Just to add to what you said, if I am not mistaken most of the land they have gotten already was swapped for shares in the company with Silver Standard. I haven't gone over their quick sheet or their latest corporate preso so I am not sure how many shares Silver Standard got.

Sure the company will probably have to do some JV's and Seabridge is a likely partner due to proximity. However, I would like to say any mining company that can get the land that Pretium has along with the amount of gold oz. estimated (25 to 60 Moz.) no doubt puts them in the category of a Nova Gold for the potential of their properties. And you have great leadership out of the gate. To me Quartermain will be like McEwen or Lassonde. In other words, successful.

IIRC there is a low amount of shares too which is a reason why they were above $10 not too long ago. Not sure of the price today.

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“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.” Norm Franz

I picked this one up also just as it was moving quick from 6.00. Was alerted by paid subscription that it had 3 to 7 dollars left in the run after it hit 9.50 and sure enough it touched 14.00. I am holding for the longterm.

You gotta check the drill results just posted last week. Never seen that many ozs in a hole.

Despite buying this share back in Jan and admiring how much it's held its ground despite the mining shares being gutted since then, remember that this is largely a bet on one man: Quartermain. Until enough holes are drilled and trusted geologists are able to comment on the findings, this is a speculative share, not for everyone. It could be that the veins are too dispersed, too deep to be financially viable or many many other reasons.

Guys, I don't know if you are being sarcastic. I've seen better results. There are a couple of holes that look very good, but those larger gpt are over .5 meters. Their nice especially if they go deeper or longer or are part of a vein system. Economically feasible? Yes. Bonanza? Not so much.

But I am still trying to figure out what constitutes on one end of the spectrum economic (usually 1 gpt or more for gold, and probably now 1 oz per ton silver) and then the bonanza grades.

From what I understand is the better the length of the find in meters the better it is.

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“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.” Norm Franz

Yes the one you mentioned and the 53.5m 3.81 gpt holes were the ones I was referring to. I'm not saying that this isn't good news. I am just saying some better consistency would be nice. With the smaller veins yielding big gpt I am just asking how far do those veins go?

I am also saying I am trying to learn what constitutes a "bonanza" find. Looking for metrics to compare this too. I fully admit that I am here to learn too.

Sometimes I think the miners put out press releases just to get a pop in share price. I'm trying to discern the good info from the bad in the press releases specifically when it comes to drill results.

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“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.” Norm Franz

They do put out drill results to get a pop in share price but its better than no PR. I have definitely seen better overall results, but those couple small meter results were some of the highest numbers I have seen. But like you said, maybe they don't go anywhere deep. Only time will tell after they drill all around those areas. Its a tedious and timely process that just adds to their value.

It feels like a bubble stock the way the price has soared. and plunged. From 6 to 14 in february...then back down to 8....then climbed up to 13 and now down to 10,up to 12,down to where we're at now. in between highs and lows is not the place to buy.IMO

I completed my initial foray at appx $10 per share. Thanks to you, sheeple, I came into the position with a smaller size than I may have otherwise. I can always scoop more later. Thanks for your expression. I do listen to others. Sometimes! :)

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